Conventional thinking suggests that you buy a home in which to live and then go about finding investment properties to generate additional income and undertake that process alone. There is a passive property investment option that is quickly gaining popularity, turnkey real estate investing. This popular option enables investors to earn passive income and build equity without all the hassle of doing it themselves. Instead, they find an experienced turnkey provider to manage the process of finding investment property, renovation, finding tenants and managing the property.
While it wouldn’t work for some, there are many people who would do well to consider buying a turnkey rental property rather than taking an active role and doing it themselves. A young couple looking to add to their retirement portfolio, an older couple looking to earn passive income, or virtually anyone with good credit and/or savings can make turnkey investing work.
Many new investors look at their properties as investments that can turn profits when they eventually sell them, and many simply want to flip a home to make a quick profit. But doing so requires taking on a lot of risk, a lot of work, and potentially a lot of rehabilitation money for repairs and maintenance, which might kill any profit potential. But when you buy a turnkey rental property, you can take a more passive approach and leverage others experience to turn a profit. Experienced turnkey providers know their markets very well and have a process when it comes to finding property, renovating and securing tenants. Often times, it’s a smart option to take advantage of their experience and market knowledge. Many new property investors that undertake this can make costly mistakes that end up eating into their long term profits as well as eating up a lot of their time.
A turnkey property with a low purchase price and high rents makes a great turnkey property investment. Look for markets that have this sweet spot. There are a few markets nationally that offer this as well as growth potential. Jacksonville, FL, for example, has neighborhoods that offer homes with a lot of opportunity in the low $100,000’s in neighborhoods with great growth potential.
When you invest in a turnkey property, you need to ensure you do your homework and buy a good property instead of a money pit. Teaming with a skilled and experienced turnkey provider can help you to find the properties with the best potential, and can help you with the entire process. Look for companies that have a lot of experience and case studies proving their worth. Not every turnkey provider is equal.
You also need to ensure you invest in a quality turnkey property that will provide a good home for your tenants and enable you to reap the maximum profitability. A quality property that requires standard renovations such as flooring, roofing, plumbing and appliances will be much easier for you to eventually sell.
When looking to build long term wealth, save for retirement and earn passive income, many are choosing turnkey rental property investing. This allows them to leverage the experience of others and save time while building their investment portfolio.